By Steigrad
Paramount Global executives revealed a plan to slash costs and find a partner for its streaming service – but shares fell nearly 5% Tuesday as hopes of a merger with Skydance Media dimmed.
Shari Redstone, Paramount’s controlling shareholder, rallied investors Tuesday morning at the company’s annual meeting around an aggressive $500 million cost-cutting plan under the firm’s trio of CEOs that would “drive value for all our shareholders” and allow the company to invest in “best-in-class content.”
The move would include focusing on finding a strategic partner for its money-losing streaming service Paramount+, as well as divesting some assets, which could include putting BET Networks back on the block, the CEOs said at the meeting.
A leading Paramount analyst said the detailed presentation cast doubts on the likelihood of a deal with Skydance, which submitted a revised bid to merge with Paramount that was approved by the company’s special committee last week.
Redstone, however, hasn’t indicated whether she would accept the offer.
On Tuesday, Paramount– which owns CBS, MTV, Paramount Pictures and Showtime – said it rescheduled Wednesday’s planned employee town hall for June 25, citing ongoing speculation about a potential deal.
“We want to be able to speak to you with as much candor and transparency as possible,” the company’s co-CEOs told employees in a note seen by Reuters. “By moving the date, our hope is to do just that.”
